How to effectively control overdue loans

To effectively control overdue loans, simply speaking, you need to do the following three things:

1. Pre-loan investigation

The basic contents of the pre-loan investigation mainly include:

(1) Basic situation: mainly the borrower’s qualifications as a loan subject and whether the basic conditions meet the requirements.

(2) Business conditions: mainly the borrower’s production, sales, profitability and development prospects in recent years.

(3) Financial status: mainly the current status and changes of the borrower's assets and liabilities, capital structure, profitability, cash flow, etc. in recent years.

(4) Credit status: mainly refers to whether the borrower has defaulted on the principal and interest of the loan owed to the financial institution and has a bad credit record.

(5) Operator quality: mainly the knowledge, experience, performance, moral character and management capabilities of the legal representative and main leadership.

(6) Guarantee situation: mainly the ownership, value and ease of realization of the mortgage (pledge), and the guarantor’s qualifications and ability to guarantee.

2. Loan review

1. The main contents of the review include:

(1) Whether the borrower’s subject qualifications are legal and whether he has assumed civil liability ability.

(2) Whether the borrower meets the basic conditions for the loan.

(3) Whether the borrower’s production and operation, financial status, credit standing, development prospects and internal management are in good condition.

(4) Whether the purpose of the loan is in compliance with regulations, and whether the amount, term, and interest rate are in compliance.

(5) The authenticity of the official seal of the legal person, the seal of the legal representative or authorized agent, and the signature sample.

(6) Review of the reliability of the mortgage (pledge) or the qualification and ability of the guarantor.

2. Loan approval

On the basis of loan investigation and review opinions, approval will be carried out according to the authorized authority to decide whether to lend or not, whether to lend more or less, as well as the loan method, term and interest rate.

3. Post-loan inspection

1. Establish loan ledger and loan business management files

2. Main contents of post-loan inspection

< p>(1) Regularly inspect the borrower's production and operation status, credit status, debt repayment ability and loan usage.

(2) Focus on checking the use of loans, changes in debt solvency and performance of loan contracts.

(3) Check the current status and value changes of the mortgage (pledge) and the changes in the guarantor’s solvency.

3. Post-loan management

(1) One week before the loan expires, a notice (telephone reminder) must be issued to the borrower to remind the borrower of loan repayment.

(2) If the loan is overdue, written reminder notices must be sent to the borrower every month and a receipt must be obtained.

(3) If the loan is overdue for more than three months, the loan must be collected from the borrower in accordance with the law.

What is the overdue rate, how to calculate the overdue rate, and the overdue loan rate calculation formula

The overdue loan rate refers to the proportion of overdue loans to all loans. It is used to reflect the loan The on-schedule repayment situation is a procedure that reflects the benefits of loan use and asset risks from the perspective of whether the loan is repaid on schedule. Monitoring the overdue loan rate is mainly to promote banks to properly handle overdue loans as soon as possible. The formula for calculating the overdue loan rate can be calculated based on the ending balance and the average balance. The formula is as follows: Overdue loan rate at the end of the period = balance of overdue loans at the end of the period / total balance of loans at the end of the period; average overdue loan rate = average of overdue loans throughout the period Balance/average loan balance over the entire term.

Consequences of overdue loans

1. Penalty interest: When signing a loan contract, some relevant provisions will generally be made for overdue loans. Overdue loans will generally result in penalty interest. Financial Different institutions have different amounts of penalty interest and interest generated. However, as an expense that should not be incurred, it is best not to incur it.

2. Credit stain: This cannot be underestimated. Once the loan is overdue, the bank will report your overdue record to the central bank's credit reporting system. Once the record is generated, it will leave a stain on your personal credit report. This small stain will cause great resistance to your future loans or credit card applications, so borrowers must not lose big for the small.

3. Unable to enjoy the preferential interest rate for loans: We all know that when applying for a loan at a bank, the loan interest rate will fluctuate to varying degrees. High-quality customers can usually get the lowest loan interest rate. However, Users with past loan overdue records will not be able to enjoy interest rate discounts even if they are able to apply for a loan.

4. If it is overdue, it will have different effects on your credit report depending on the length of time. A credit report that is seriously overdue (more than 90 days) will become a black account. You will not be able to apply for any loan business before the overdue repayment. Overdue fees will also incur additional fees such as liquidated damages and overdue interest. Long-term overdue payments will eventually lead to interest rates greater than Principal matters are also very common, so please treat it with caution.

How many days does it take for a loan to be considered overdue?

A loan that is overdue for one day is considered overdue, and a loan that is overdue for more than ninety days is considered cumulatively overdue.

And the regulations are different depending on the bank. A simple bank loan is considered overdue for more than one day. Generally, the level of a loan overdue within 30 days is 1, and the level is 2 for 30-60 days. The level of 60--90 days is 3, and so on, it is 4, 5,,. Generally, overdue items within 30 days are minor and not serious!

According to the "China Bank Card Industry Self-Discipline Convention", no penalty interest will be charged if the payment is delayed for up to 3 days and the repayment difference is within 10 yuan. This delay can be regarded as a concession by the bank, because in the past, if the repayment was one or two days late, or even a fraction less, the full amount of penalty interest might be incurred, causing personal repayment to be overdue. The "Convention" stipulates that banks provide cardholders with long-term services, send repayment reminders through text messages, emails, etc. at least 3 days before the due date of repayment, and provide at least a 3-day repayment period. In other words, if the cardholder repays the money within 3 days after the specified repayment date, the bank should treat it as full repayment at the same time, without penalty interest. Note: 3 days refers to natural days, not working days.

The bank also provides tolerance services to cardholders, that is, if the cardholder has insufficient repayment in the current period, and the outstanding amount is less than or equal to a certain amount (at least the equivalent of RMB 10), he should The cardholder will be deemed to have repaid the amount in full.

If the cardholder does not repay the full amount after the due payment date and does not choose the minimum repayment amount, the bank will generally take the following measures:

1. Give the credit card Those who are overdue can make a reminder call or send a reminder letter.

2. If you are overdue more than 6 times and fail to repay once, you will be blacklisted by the "Personal Credit Information System" of the People's Bank of China. The bank will freeze the credit card account of the overdue person and blacklist the overdue person. The list and debt record may be fed back to the People's Bank of China's personal credit reporting system, affecting the cardholder's personal credit record and causing the cardholder to be unable to apply for housing mortgage loans.

3. If the overdue amount of the credit card is large (principal of more than 10,000 yuan), overdue for more than three months, and the bank has called for it twice but still has not repaid, it is a malicious overdraft of the credit card, which constitutes a credit card crime.

What is the overdue rate and how is it calculated?

The overdue rate is the overdue loan rate, which refers to the proportion of overdue loan balances in the current loan balance. The overdue loan rate is used to reflect the on-schedule repayment of the loan. It reflects the loan utilization efficiency and asset risk procedures from the perspective of whether the loan is repaid on schedule. Overdue loan rate calculation formula:

1. Overdue loan rate at the end of the period = overdue loan balance at the end of the period / total loan balance at the end of the period

2. Average overdue loan rate = average balance of overdue loans throughout the period ( Actual overdue amount)/average balance of loans throughout the period

Usually the main reasons for overdue loans are: delay in construction period, suspension of construction, inability to use after completion, low economic benefits after put into production, no repayment ability, very Loss and non-agreement to return, etc. Under normal circumstances, the overdue loan rate should not exceed 8%. The lower the ratio, the better the loan's principal recovery, the more efficient the use of funds, and the lower the risk of the asset, and vice versa.

Extended information

The biggest feature of overdue loan data is that it is absolutely objective. Once the loan issued by the bank cannot repay the principal and interest on time, it will become an overdue loan. The loan is overdue. It is an objective fact. As long as it occurs, it will appear in the bank's financial statements and be counted among the due loans, so that the subjectivity of overdue loans is eliminated to the greatest extent possible.

This characteristic of overdue loans provides us with the most objective indicator for observing the changing trend of bank non-performing loans.

Overdue loans are a precursor to non-performing loans, and the changing characteristics and trends of overdue loans are an observation window for predicting non-performing loans. Some banks with a larger increase in non-performing loans than at the beginning of the year also saw a larger increase in overdue loans during the same period, and will face greater asset quality pressure in the future.

If a company has loans that have not been repaid when due, it will have a negative impact on the company's credit, which will affect the company's refinancing in the entire bank credit system.